HARRY'S BI-WEEKLY UPDATE 2.7.21
February 7, 2021
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.
IT’S SUPERBOWL SUNDAY…
…and I thought I’d start your day with a “Super” eNewsletter from your “Super Realtor”—me! In fact, I was again named to the National ERA 2020 “Leader’s Circle”, having demonstrated my super abilities in working with clients. Please enjoy this eNewsletter…and then enjoy the SuperBowl later today. Go Chiefs! Go Bucs! (you didn’t think I’d show a preference for anyone but the Broncos, did you?)
THE SEARCH FOR HOMES CONTINUE…BUT YOU’VE GOT A SECRET WEAPON…AND I NEVER GIVE UP
You heard that one right! It’s a tough out there in the residential real estate world but lucky for you, I’ve been wading through these home wars for almost 48 years and know the ins and outs of most all cycles. That, combined with my Investment Banking background, gives me a considerable heads up on the competition and helps me provide possible solutions that others may not know exist.
Quite honestly, this cycle is unlike any we’ve historically seen, so working with a knowledgeable, professional and trustworthy real estate broker like myself is of utmost importance in making any and all of your residential real estate decisions.
As you will see in the statistics below, there is a record low of existing homes for sale in our area, and according to Lawrence Yun, chief economist for the National Association of REALTORS (NAR), things are not likely to change much in the coming year. He is forecasting for the USA in general, and things here in Colorado Springs will not only mirror the rest of the country but will likely be even tighter as so many folks are wanting to relocate here. Like most things, it’s a matter of supply and demand and in this case, existing homes for sale cannot meet buyer demand. It looks to be a seller’s market for some time to come.
With so few available homes for sale, when one comes on the market it often is under contract that same day, after bidding wars and at a cost considerably over list price. I’ve seen as many as 43 offers on lower priced homes. Crazy world we live in and one that can make it hard to make a move for you and your family. It’s especially hard for millennials and first-time buyers who don’t have the down payment or the credit history to qualify for those higher priced homes.
What to do? Knowing what you want, need and can afford is the best place to start. The fast-paced decision making today requires you to do some homework so you can move quickly when you find the “one” you want. And oftentimes in today’s low interest environment, you can possible afford a higher priced home than you might imagine since the monthly payments at these low mortgage interest rates are keeping monthly costs in check while providing folks with more home for the money.
Mortgages for home purchases across the country have reached record highs, but if you are a buyer in most any price range, don’t get too hung up on the price of a home—look at look at the actual out of pocket monthly costs to determine what you can afford.
Colorado Springs-area homebuilding is the hottest it’s been since 2005 and this year is already off to a fast start. A number of my clients have looked in that direction lately and I’ve been able to provide them with assistance in home and site selection as well as directed them to a lender that suits their individual situation. These homes continue to rise in price as well due to the price of lumber and other materials.
The importance of matching the right lender to the buyer cannot be over-emphasized. Recently I had a client who I helped with the purchase of a newly constructed home. The lender was specified by the builder and this created a number of problems for the buyer due to the lack of due diligence on the part of the lender. This particular lender didn’t honor the performance dates in the sales contract, and it caused additional stress for my buyer, something I work hard to avoid whenever possible.
And when it comes to new construction, I’ve been finding that there are a number of choices in most price ranges that can provide families just what they are looking to buy. I’ve even had some investment clients purchase newly constructed home as rentals, because with low interest rates they are able to find renters who would much rather have a home than an apartment for the same amount of money and this can provide positive cash-flow in the right situation.
Any and all of these options are out there, and it can be tough to figure out the way to go. That’s why you’ve got me. Bring me all of your wishes, dreams, wants and needs, along with your budget requirements and let’s get to work. Together we will get it done…and done right…for you and your family.
And it all starts with a simple phone call to 593.1000 or an email to Harry@HarrySalzman.com to get the ball rolling. Please call me even if you are considering a move…because you won’t know until you talk it through and see it on paper if this is the right time or right decision for your personal situation.
I look forward to seeing you soon.
And now for statistics…
JANUARY 2021
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the January 2021 PPAR report. Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood. However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.
In El Paso County, the average days on the market for single family/patio homes was a very low 15. For condo/townhomes it was 8.
Also in El Paso County, the sales price/list price for single family/patio homes was 101.7% and for condo/townhomes it was 101.8%.
Since this is also year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2020 to 2019.
Please click here to view the detailed 10-page report, including charts. If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.
In comparing January 2021 to January 2020 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,112, Down 16.6%
· Number of Sales were 971, Up 6.0%
· Average Sales Price was $433,581, Up 15.5%
· Median Sales Price was $385,000, Up 14.3%
· Total Active Listings are 460, Down 61.3%
· Months Supply is 0.5, Down 10.2%
Condo/Townhomes:
· New Listings were 160, Down 20.0%
· Number of Sales were 155, Up 14.0%
· Average Sales Price was $285,746, Up 6.3%
· Median Sales Price was $279,282, Up 15.2%
· Total Active Listings are 64, Down 49.2%
· Months Supply is 0.4, Down 3.5 %
Now a look at more statistics…
JANUARY 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL
Colorado Association of REALTORS® , Pikes Peak REALTORS Service Corp, or it’s PPMLS
Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate
The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:
- Sold Listings for All Properties were Up 7.4%
- Median Sales Price for All Properties was Up 13.8%
- Active Listings on All Properties were Down 58.6%
You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:
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real estate IN 2020: PLENTY OF REASONS FOR OPTIMISM
Realtormag, Jan-Feb 2021
I recently read an article by Lawrence Yun, chief economist for NAR, which I found to be enlightening as well and encouraging, so I wanted to share some insights with you. I will quote some excerpts below:
“The housing market was a spectacular surprise in 2020—and the positive trend will continue this year. Home sales in 2021 are expected to rise by around 10%. Home prices will also climb, but I expect more moderate increases than we’ve seen, a break for first-time buyers. Mortgage rates will continue to be favorable, staying at or near historic lows of 3% on average. The labor market will strengthen, expecially as vaccines become widely available and life moves toward normal…
…Low mortgage rates have been the key reason for the housing market’s strong performance in the midst of the pandemic and high unemployment…. And while mortgage rates are highly influential, they’re not the only factor affecting home sales. Given the substantial commitment and financial dollars at stake, consumer confidence and life-cycle events such as marriage, changes to family size, and retirement all play a role…
…Owners who were content with their home before the pandemic are thinking about the benefits of another bedroom to use as a dedicated home office or are considering relocating to the countryside, knowing that commuting to downtown offices every day has become a thing of the past.”
Mr. Yun shared a graph of his forecasts:
I’ve been acquainted with Mr. Yun and have found him to be “right on” when it comes to predicting real estate trends and forecasts. I, too, believe that 2021 has the potential to be a wonderful year for residential real estate…as long as we get more homes on the market and get some of the pandemic restrictions behind us.
UCCS ECONOMIC FORUM DASHBOARD
UCCS College of Business, updated 1.29.21
I just received the most recent economic report from the UCCS Economic Forum and wanted to share the statistics with you, as always. It presents both the big picture of the US as well as our local economic trends. trends. Please click here to see the report and if you have any questions, please give me a call.
BUYERS MUST BE READY TO ACT QUICKLY
RealtorMag, 2.4.21
Once again, a reminder that in this fiercely competitive market with low inventories and escalating prices, it is essential to have answered all your questions concerning wants, needs and budget requirements. Pre-approval as always, is imperative. And tenacity is equally important. It may take a while, but with me by your side you can know I will do my very best to keep the search as stress less as possible.
Just remember—keep all your options open—and when you find what you want—there’s no time to “think about it”. It’s most definitely one of those “if you snooze, you lose” kind of things. I wish I could tell you differently, but please be forewarned.
And don’t despair…we WILL find you what you want…it just might take a bit longer…or a few detours…to get there!
ON A SWEET ENDING NOTE…
